Russian stocks to rise as officials’ comments boost oil prices

MOSCOW, Sep 7 (PRIME) -- The Russian stock market will likely continue its upward trend on Wednesday at the trading session’s opening because comments regarding the future oil price stabilization measures by state officials led to an oil price increase so far, analysts said.

“We still expect positive dynamics of the stock market in the next several weeks on the back of an expected commodities’ market improvement and a better perception of the Russian country risk as well as to a general resumption of capital inflow into high margin assets as expectations of the U.S. key rate increase are weakening,” Ilya Frolov, a senior capital markets and industries research and analysis manager at Promsvyazbank, said.

Brent has consolidated at about U.S. $47 per barrel on statements concerning measures to be taken at a future energy forum in Algeria. Iranian Foreign Minister Bijan Zangeneh said that Iran is ready to support oil price stabilization measures. “Coupled with the accord between Saudi Arabia and Russia, such statements inspire optimism in market participants,” Pavel Salas, general director for Russia and CIS at brokerage company eToro, said.

The MICEX will likely open with an upward gap at about 2,040 and can grow beyond 2,050 during the day, Oleg Shagov, head of investment company Solid’s research department, said.

The intraday dynamics of the Russian stock exchange will mostly depend on the oil price, foreign markets’ dynamics, and fluctuations of the ruble rate, Shagov said.

Publication of a financial performance report by Sberbank under Russian Accounting Standards can potentially influence the entire market, Shagov said.

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